Indonesia sets new environmental regulation for businesses within industrial parks

On January 17, 2020, Indonesia enacted the “Regulation of the Minister of Industry No. 1 of 2020 on preparation of the Detailed Environmental Management and Monitoring Measures for Industrial Companies located or to be located in Industrial Parks”. This regulation requires business entities to prepare and implement the Detailed Environmental Management and Monitoring Measures (hereinafter, Detailed RKL-RPL) for enterprises (industrial companies) occupying sites within an industrial park. Eligible companies must compile information on their business activities and environmental management measures and have it reviewed for approval. This regulation came into effect upon its enactment.

The original text of this regulation is available for download at the following URL.
http://jdih.kemenperin.go.id/site/download_peraturan/2598

Detailed Environmental Management and Monitoring Measures:

In preparing the Detailed RKL-RPL, an industrial company must use the FM-I form in the Annex to this regulation and collect the following information:

1. Industrial company identification information,
2. A detailed description of the industrial company’s business or activity plan,
3. Potential environmental damage,
4. A detailed environmental management and monitoring program, and
5. A pledge of the industrial company to enforce the provisions listed on the detailed RKL-RPL.

Here, the Detailed RKL-RPL must contain not only the company’s basic information, but also detailed data on production processes, raw materials, water usage, energy usage, etc.

The prepared Detailed RKL-RPL must be submitted to the industrial park developer, and the submitted documents must be reviewed by the industrial park developer and meet the following review criteria for its approval:

1. The proposed site of the project or activity is consistent with the basic plan/master plan of the industrial park,
2. The project or activity plan is consistent with the Industrial Park Environmental Management and Monitoring Measures (Industrial Park RKL-RPL),
3. The initiator or others must have the abilities to take responsibility for dealing with the serious harm caused by the proposed project or activity through technical, social, and organizational approaches, and
4. The project or activity plan shall not exceed the environmental quality standards of the industrial park.

The costs associated with the preparation and review of the above Detailed RKL-RPL must be born by the industrial company.

Industrial companies that have already obtained the Environmental Impacts Assessment (AMDAL) prior to enactment of this regulation do not need to prepare detailed Environmental Management and Monitoring Measures (detailed RLK-RPL) based on this regulation.